This is also driving prime vacancy rates below 4% and pushing rents up by 7% this year.
The traditional 10-year office lease, once the undisputed bedrock of corporate strategy in Singapore, has reached its terminal point. What was once a symbol of permanence and stability has now transformed into a liability. While MNCs have flirted with shorter terms for years, 2026 is the year of the final break.
Singapore is currently facing a structural deadlock in the form of a “supply cliff”. Grade-A CBD completions for 2026 and 2027 are limited to just 0.6 million sq ft, which is a third of the nation’s historical annual demand.
